Category: MIL-OSI

Source: United States Department of Justice Criminal Division

A federal grand jury in Alaska returned an indictment last week charging an Anchorage doctor and her husband with health care fraud and tax evasion.

According to court documents, from 2010 to 2023, Claribel Tan, 60, a practicing rheumatologist, and her husband, Daniel Tan, 69, operated Claribel K. Tan MD LLC (CKTMD), a medical clinic in Anchorage. The indictment alleges that the couple defrauded health care benefit programs by causing the submission of false claims that misrepresented the type and dosage of medication, and the scope of medical services provided to patients. Further, the indictment alleges that both defendants deceived patients regarding the necessity of receiving medication at the clinic and created false medical records. The indictment also alleges that Claribel Tan deceived patients regarding what substances she injected into their bodies. In total, the Tans received over $10 million in fraudulently obtained funds. In a separate civil action, the Justice Department seized roughly $8.5 million of those funds from the defendant’s accounts.

The indictment also alleges that the Tans evaded income taxes for 2014, 2015 and 2017 by providing false information to their return preparer that overstated CKTMD’s expenses and filing false tax returns that understated their income. The indictment further alleges that Daniel Tan evaded income taxes for 2016 when he provided the Tans’ accountant with false information for that return. The accountant allegedly ceased preparing tax returns for them, and the Tans did not file tax returns for 2016.

The indictment further alleges that the Tans did not file tax returns for 2018 through 2021, despite being required to by law.

The defendants are each charged with one count of health care fraud and four counts of willful failure to file a tax return. Daniel Tan is charged with four counts and Claribel Tan is charged with three counts of attempting to evade and defeat tax. The defendants will make their initial court appearance today before U.S. Magistrate Judge Scott A. Oravec of the U.S. District Court for the District of Alaska.

If convicted, they face a maximum sentence of 10 years in prison for health care fraud, five years for each count of tax evasion and one year for each count of failing to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney S. Lane Tucker for the District of Alaska made the announcement.

The IRS Criminal Investigation, Defense Criminal Investigative Service, FBI, Defense Contract Audit Agency, Department of Veterans Affairs Office of Inspector General Criminal Investigations Division, Department of Labor Employee Benefits Security Administration, Food and Drug Administration Office of Criminal Investigations and State of Alaska Division of Insurance Investigation Unit are investigating the case.

Trial Attorney Dominick Giovanniello of the Justice Department’s Tax Division and Assistant U.S. Attorneys Morgan Walker and Seth Beausang for the District of Alaska are prosecuting the case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice Criminal Division

A Chinese national was indicted for his part in a conspiracy involving the importation of what is believed to be the largest amount of fentanyl precursors found in the Southern District of Texas and one of the largest in the country.

Minsu Fang, 48, also known as Fernando, was charged in a four-count indictment with conspiracy to possess with intent to distribute a controlled substance, conspiracy to distribute a controlled substance for purpose of unlawful importation, conspiracy to import a controlled substance, and conspiracy to export a controlled substance.

“We charged this defendant for importing enough fentanyl precursor chemicals from China to kill millions of Americans,” said Attorney General Merrick B. Garland. “Fentanyl is the deadliest drug threat the United States has ever faced, and the Justice Department is committed to breaking apart every link in the global fentanyl supply chain.”

“To end the deadliest drug threat the United States has ever faced, the Drug Enforcement Administration (DEA) starts where the harm begins – with the Chinese chemical companies and the individuals that are selling chemicals to those who make and sell the fentanyl that is killing Americans. This work led DEA to Minsu Fang, who is charged with selling more than 2,000 kilograms of fentanyl precursors. This marks one of DEA’s largest seizures of fentanyl chemicals to date in the United States,” said DEA Administrator Anne Milgram. “The DEA is laser-focused on saving American lives by disrupting the entire global fentanyl supply chain that is responsible for flooding our communities with fentanyl. By disrupting Fang’s operations, DEA and our partners saved countless lives in the United States.”

“My office is focused on disrupting and dismantling the transnational criminal organizations flooding the United States with fentanyl, a drug that is killing our children,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Fang allegedly imported over 2,000 kilograms of raw materials from China destined for various places in Mexico used in the manufacture of fentanyl. This historic seizure represents a multi-agency collaboration that prevented the production of millions upon millions of deadly doses of fentanyl-laced pills.”

“Homeland Security Investigations (HSI) plays a pivotal role in disrupting the supply of illicit opioids at every point in the drug supply chain: internationally, at our nation’s borders, and in communities throughout the United States,” said Special Agent in Charge Craig Larrabee of HSI San Antonio. “The partnerships in this investigation were key to securing this indictment. The threat imposed by fentanyl dictates that agencies not only deconflict and coordinate, but to also collaborate. This investigation and prosecution are the perfect example of collaboration across agencies and throughout the country.”

The now unsealed charges allege Fang and his associates shipped over 2,000 kilograms of fentanyl precursor chemicals from China into the United States and on to Mexico in approximately 100 separate shipments between August and October 2023. Fang and his co-conspirators were able to avoid law enforcement interdiction of the shipments by declaring them to have a de minimis value, less than $800, and commingling the boxes containing the precursor chemicals with similarly low valued import items, according to the charges.

As a result, each of the shipments were allegedly admitted into the United States without a detailed inspection of the individual contents. Once in the United States, Fang, through co-conspirators, shipped the chemicals into Mexico, according to the charges.

If convicted, Fang faces a maximum penalty of life in prison on each count, as well as a $10 million fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The DEA and HSI investigated the case.

Assistant U.S. Attorneys Richard D. Hanes and Heather Rae Winter for the Southern District of Texas are prosecuting the case.

An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice Criminal Division

A New Hampshire man pleaded guilty today to not paying more than $14 million in employment taxes and not filing personal tax returns.

According to court documents and statements made in court, Andrew Park, 49, of Bedford, was the co-founder and CEO of a startup technology company. Park was responsible for all financial matters related to the company, including for filing the company’s quarterly employment tax returns and collecting and paying over Social Security, Medicare and income taxes withheld from the employees’ wages to the IRS, as well as the Social Security and Medicare taxes the company owed.

He was also responsible for collecting and paying over state and local employment taxes to those respective governments. From the company’s founding in 2014 through the third quarter of 2021, Park withheld these federal, state and local taxes from the employees’ wages but did not pay them over as required by law. He also did not pay over the portion of the employment taxes that the company owed. Park did so even though a payroll service company that he hired to process the employees’ payroll regularly notified him that the taxes were due and in more than one instance was notified by an employee that the amount paid to Social Security listed on her W-2 did not match what was reported by the Social Security Administration.

From 2013 through 2020, Park also did not file individual tax returns as required by law, despite the fact that he paid himself a salary of approximately $250,000 each year.  

In total, Park caused a tax loss to the IRS exceeding $14 million, as well as additional losses to state and local taxing authorities.

He is scheduled to be sentenced on Nov. 14 and faces a maximum penalty of five years in prison for the charge of willful failure to account for and pay over payroll taxes, and one year in prison for the charge of willful failure to file a tax return. Park also faces additional penalties including supervised release and fines, as well as the payment of restitution to the IRS and other taxing entities. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and U.S. Attorney Jane E. Young for the District of New Hampshire made the announcement.

IRS Criminal Investigation is investigating the case.

Assistant Chief Eric Powers of the Tax Division and Assistant U.S. Attorney Matthew Hunter for the District of New Hampshire are prosecuting the case.

Source: United States Department of Justice Criminal Division

A Nigerian national was sentenced today to 85 months in prison for his role in a transnational inheritance fraud scheme. With today’s sentencing, each of the six defendants connected with this matter has been sentenced. 

According to court documents, Amos Prince Okey Ezemma, 50, was a member of a group of fraudsters that sent personalized letters to elderly victims in the United States, falsely claiming that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who had died years before in Portugal. Victims were told that before they could receive their purported inheritance, they were required to send money for delivery fees and taxes and were instructed to make other payments. Victims sent money to the defendants through a complex web of U.S.-based former victims. The defendant and his co-conspirators also convinced former victims to receive money from new victims and then forward the fraud proceeds to others. 

“The Justice Department’s Consumer Protection Branch will continue to pursue, prosecute and bring to justice transnational criminals responsible for defrauding U.S. consumers, wherever they are located,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This case is testament to the critical role of international collaboration in tackling transnational crime. I want to thank the members of the Postal Inspection Service and Homeland Security Investigations, as well as the Spanish National Police, National Crime Agency and Portuguese Judicial Police for their outstanding contributions to this case.”

“This investigation is a great example of the results the U.S. Postal Inspection Service (USPIS), the Justice Department and our law enforcement partners strive to achieve,” said Inspector in Charge Juan A. Vargas of the USPIS Miami Division. “We will continue to identify and dismantle transnational groups targeting American citizens and using the mail to further their schemes to defraud. Justice has no borders.”

“Targeting the elderly for pure financial gain is beyond shameful, it’s morally reprehensible,” said Special Agent in Charge Fransisco B. Burrola of Homeland Security Investigations (HSI) Arizona. “Protecting such a vulnerable population is not just the responsibility of family members but also law enforcement agencies like HSI and our partners. Together, we are a force multiplier committed to apprehending those who scam our seniors. Let these lengthy sentences serve as reminders that HSI will not tolerate criminals who are motivated by greed.”

Each of Ezemma’s five co-defendants has been sentenced to prison for their roles in the scheme. On June 21, 2023, the Honorable Kathleen M. Williams sentenced Emmanuel Samuel to 82 months in prison. On July 25, 2023, Judge Williams sentenced Jerry Chucks Ozor to 87 months in prison. On Aug. 29, 2023, Judge Williams sentenced Iheanyichukwu Jonathan Abraham to 90 months in prison. On Oct. 20, 2023, Judge Williams sentenced Kennedy Ikponmwosa to 87 months in prison. And on Nov. 2, 2023, Judge Williams sentenced Peter Ezennia Neboh to 128 months in prison. Judge Williams also ordered Ezemma and his co-defendants to pay more than $6 million in restitution to their over 400 victims.

The Consumer Protection Branch, USPIS and HSI investigated the case.

Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorneys Josh Rothman and Brianna Gardner of the Justice Department’s Consumer Protection Branch are prosecuting the case. The Justice Department’s Office of International Affairs, U.S. Attorney’s Office for the Southern District of Florida and Europol all provided critical assistance.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the Federal Trade Commission at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

Source: United States Department of Justice Criminal Division

A Kentucky man was arrested today and charged with federal hate crime and firearms offenses for threatening a Palestinian American man with a loaded gun.

According to the indictment that was unsealed this morning, on or about March 28, Melvin P. Litteral III used force or the threat of force to intimidate and interfere with the victim – a Palestinian American man and practicing Muslim identified in the indictment by the initials O.S. – because of O.S.’s race, color, religion and/or national origin, and because O.S. was enjoying the goods, services and facilities of a local restaurant. The indictment also includes a weapons charge, alleging that the defendant brandished a firearm during the offense.

If convicted of the hate crime offense, Litteral faces a maximum penalty of 10 years in prison and a fine of up to $250,000. If convicted of the firearms charge, Litteral faces a mandatory minimum penalty of seven years in prison, to run consecutively to any sentence imposed for the hate crime offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.

The FBI Louisville Field Office is investigating the case.

Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Katherine G. DeVar of the Civil Rights Division are prosecuting the case.

An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.